Correlation Between Versatile Bond and Ssga International
Can any of the company-specific risk be diversified away by investing in both Versatile Bond and Ssga International at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Versatile Bond and Ssga International into the same portfolio, which is an essential part of the fundamental portfolio management process.
By analyzing existing cross correlation between Versatile Bond Portfolio and Ssga International Stock, you can compare the effects of market volatilities on Versatile Bond and Ssga International and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Versatile Bond with a short position of Ssga International. Check out your portfolio center. Please also check ongoing floating volatility patterns of Versatile Bond and Ssga International.
Diversification Opportunities for Versatile Bond and Ssga International
0.16 | Correlation Coefficient |
Average diversification
The 3 months correlation between Versatile and Ssga is 0.16. Overlapping area represents the amount of risk that can be diversified away by holding Versatile Bond Portfolio and Ssga International Stock in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Ssga International Stock and Versatile Bond is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Versatile Bond Portfolio are associated (or correlated) with Ssga International. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Ssga International Stock has no effect on the direction of Versatile Bond i.e., Versatile Bond and Ssga International go up and down completely randomly.
Pair Corralation between Versatile Bond and Ssga International
Assuming the 90 days horizon Versatile Bond Portfolio is expected to under-perform the Ssga International. But the mutual fund apears to be less risky and, when comparing its historical volatility, Versatile Bond Portfolio is 1.04 times less risky than Ssga International. The mutual fund trades about -0.19 of its potential returns per unit of risk. The Ssga International Stock is currently generating about 0.15 of returns per unit of risk over similar time horizon. If you would invest 1,169 in Ssga International Stock on September 13, 2024 and sell it today you would earn a total of 22.00 from holding Ssga International Stock or generate 1.88% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Insignificant |
| Accuracy | 100.0% |
| Values | Daily Returns |
Versatile Bond Portfolio vs. Ssga International Stock
Performance |
| Timeline |
| Versatile Bond Portfolio |
| Ssga International Stock |
Versatile Bond and Ssga International Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Versatile Bond and Ssga International
The main advantage of trading using opposite Versatile Bond and Ssga International positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Versatile Bond position performs unexpectedly, Ssga International can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ssga International will offset losses from the drop in Ssga International's long position.| Versatile Bond vs. T Rowe Price | Versatile Bond vs. T Rowe Price | Versatile Bond vs. Nasdaq 100 Index Fund | Versatile Bond vs. Commonwealth Global Fund |
| Ssga International vs. Schwab E Equity | Ssga International vs. Harding Loevner Emerging | Ssga International vs. Schwab Large Cap Growth | Ssga International vs. Schwab Dividend Equity |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Companies Directory module to evaluate performance of over 100,000 Stocks, Funds, and ETFs against different fundamentals.
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